Democratic Party's Kang Byung-won: "No Easing of Comprehensive Real Estate Tax and Capital Gains Tax... No 'Golden Age of Unearned Income'"

[Image source=Yonhap News]

[Asia Economy Reporter Park Cheol-eung] Kang Byung-won, a Supreme Council member of the Democratic Party of Korea, stated regarding the easing of the comprehensive real estate holding tax (종부세, Jongbu-se) and capital gains tax (양도세, Yangdo-se) burdens, "There are quite a few lawmakers within the party who oppose it, so it won't be easy." He also emphasized, "We must not create an era of unearned income dominance."

On the 28th, Kang appeared on BBS Radio's 'Park Kyung-soo's Morning Journal' and said, "At yesterday's (27th) party meeting, there were quite a few lawmakers opposing the special committee's proposals on 종부세 and 양도세," adding, "Expanding the non-taxable range for capital gains tax or raising the 기준 (standard) for 종부세 is not easy considering the views of many lawmakers."

He continued, "Capital gains tax is levied on the actual profit made when selling a house, and the Democratic Party has consistently held the position that unearned income must be thoroughly reclaimed," and said, "Regarding 종부세, in a society where polarization and asset gaps are worsening, we must not blur the appropriate tax standards for those owning high-priced homes and substantial assets. We cannot open the era of unearned income dominance." He also expressed concern that easing 종부세 and 양도세 could send the wrong signals to the market.

The previous day, the Democratic Party's real estate special committee proposed raising the non-taxable 기준 for capital gains tax for single-homeowners from 900 million KRW to 1.2 billion KRW and taxing only the top 2% by official land price for 종부세. They announced that through a public hearing and consultations with the government and experts next month, they would either maintain the current system or prepare alternatives centered on the special committee's proposals.

Kang said, "Expanding the 대상 (scope) of property tax reductions for single-homeowners, increasing the mortgage loan ratio for the homeless, and abolishing the new rental housing business system are significant progress," adding, "The state's policy should not be about cutting taxes for high-priced multi-homeowners but about giving hope for home ownership to low-income citizens without homes. We must focus on bold supply policies that exceed market expectations and imagination."

This content was produced with the assistance of AI translation services.